6 th Annual General Meeting 24 April 2015 16 International Business Park
Important Notice This material shall be read in conjunction with CIT’s results announcements for the financial period ended 31 December 2014. The value of units in CIT (“ Units ”) and the income derived from them may fall as well as rise. Units are not investments or deposits in, or liabilities or obligations of, Cambridge Industrial Trust Management Limited (" Manager "), RBC Investor Services Trust Singapore Limited (in its capacity as trustee of CIT) (" Trustee "), or any of their respective related corporations and affiliates (including but not limited to National Australia Bank Limited, nabInvest Capital Partners Pty Ltd, or other members of the National Australia Bank group) and their affiliates (individually and collectively " Affiliates "). An investment in Units is subject to equity investment risk, including the possible delays in repayment and loss of income or the principal amount invested. Neither CIT, the Manager, the Trustee nor any of the Affiliates guarantees the repayment of any principal amount invested, the performance of CIT, any particular rate of return from investing in CIT, or any taxation consequences of an investment in CIT. Any indication of CIT performance returns is historical and cannot be relied on as an indicator of future performance. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that investors may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “ SGX-ST ”) . Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of occupancy or property rental income, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in amounts and on terms necessary to support future CIT business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view of future events. This presentation is for informational purposes only and does not have regard to your specific investment objectives, financial situation or your particular needs. Any information contained in this presentation is not to be construed as investment or financial advice, and does not constitute an offer or an invitation to invest in CIT or any investment or product of or to subscribe to any services offered by the Manager, the Trustee or any of the Affiliates.
FY2014 Achievements Robust Portfolio Management Renewed ~1.88 million sq ft of leases for FY2014 with positive rental reversion of 4.6% Acquisition of 4 quality assets for S$140.8 million, bringing total portfolio to 50 First business park acquisition at 16 International Business Park Increased Weighted Average Lease Expiry to 4.0 years Prudent Financial and Capital Management Gross Revenue up 3% to nearly $100m DPU - Achieved FY2014 DPU of 5.004 cents No further refinancing due in FY2015 Reduced all-in cost of debt to 3.6% per annum ~90% of interest rate exposure fixed for the next 2.0 years BBB- credit rating retained 3
Strategic Review 1. Acquiring core assets that are yield accretive 2. Investing in overseas markets through joint ventures with appropriate partners 3. Further strengthening the capital base to support future growth 4
Total Acquisitions (FY2014): S$140.8 million; Enhancing Portfolio’s Sectorial Diversification 16 International Business Park 12 Ang Mo Kio St 65 Total GFA: ~69,258 sq ft Total GFA: ~180,424 sq ft Purchase consideration: S$39.8 million Purchase consideration: S$39.8 million Completed on: 19 Dec 2014 Completed on: 12 Sep 2014 30 Teban Gardens 11 Chang Charn Road Total GFA: ~139,525 sq ft Total GFA: ~97,542 sq ft Purchase consideration: S$41.0 million Purchase consideration: S$32.0 million 5 Completed on: 17 Mar 2014 Completed on: 31 Mar 2014
Value Creation through AEI: Additional GFA of ~400,000 sq ft added 21B Senoko Loop (Phase II) 3 Pioneer Sector 3 (Phase I) Total GFA: ~73,026 sq ft Total GFA: ~315,350 sq ft Contract Cost: S$12.4 million Contract Cost: S$44.4 million (cost include Phase I) Completed on: 4 Jun 2014 Completed on: 10 Dec 2014 6
Protecting CIT’s Income Stream through Proactive Lease Management 4.0 years 9.1 months Weighted Average ~1.9 million sq ft Average Security Lease to Expiry of renewed leases Deposits (WALE) 30.0% Lease Expiry Profile 25.0% 4.9% 20.0% 7.8% 15.0% 10.9% 7.0% 10.0% 3.1% 18.6% 13.6% 10.5% 5.0% 8.4% 8.0% 7.2% (3 properties) 0.0% 2015 2016 2017 2018 2019 2020 + Single-Tenanted Multi-Tenanted 7 As at 31 Dec 2014
Diversified Asset and Tenant Mix Asset Class by Rental Income 2014 2013 Warehousing Business , 21.5% Park, 1.7% Logistics, No of Properties 50 47 15.9% 1.37 1.20 Property Value (S$ billion) Light Total Portfolio GFA (million sq ft) ~8.4 ~7.6 Industrial, 27.2% Car Total Net Lettable Area (million sq ft) ~7.9 ~7.3 General Showroom Industrial, and Portfolio Occupancy (%) 96.0 97.0 30.6% Workshop, 3.1% Total no. of Tenants 168 139 Single-Tenanted vs Multi-Tenanted (By Rental Income) Renewed approximately 300,000 sq ft of leases in 4Q2014, amounting to 1.88 million sq ft of leases for FY2014 Average portfolio rent: S$1.08 psf per month Multi- Tenanted Single Properties, Tenanted 45.1% Properties, 54.9% 8
Corporate Social Responsibility 30 Toh Guan Road
Corporate Social Responsibility • A member of the Singapore Green Building Council • Awarded for commitment to deploy 4.7 megawatts capacity in grid-connected solar energy systems across 10 properties • Participated with our tenants to switch off 60+ Earth Hour on 28 March 2015 • Won Gold in Singapore HEALTH Award 2014 for Exemplary Corporate Health Promotion Club Rainbow – Ride for Rainbow 2014 10
Extraordinary General Meeting 160 Kallang Way
Performance Fee Supplement Existing Performance Fee Formula: • Total return of the Trust Index outperforms the total return of the Benchmark Index 1 • The Performance Fee is calculated in two tiers (Tier 1 and Tier 2) based on a fixed percentage of the outperformance multiplied by the equity market capitalisation of CIT • Performance Fee is measured on a half-yearly basis Proposed Performance Fee Formula: • 25% of DPU growth x weighted average number of Units during FY • DPU must exceed High DPU Threshold of 5.357 2 cents (“Initial DPU Threshold”) • DPU excludes capital distribution, adjustment due to management fees paid in units • New High DPU Threshold established whenever performance fees are earned. • Performance Fees Waiver for FY2015 and FY2016. 1 Comprises of the largest 9 REITs in Singapore 12 2 FY2009 DPU
Performance Fee Unit Pricing Supplement Existing Unit Pricing Formula: • Performance Fees elected to be payable in Units is priced the higher of 10 Day Volume Weighted Average Price (“VWAP”) a) Gross Asset Value (“GAV”) b) Proposed Unit Pricing Formula: • Performance Fees elected to be payable in Units is priced the higher of a) 10 Day VWAP Net Asset Value (“NAV”) b) 13
Extraordinary General Meeting (“EGM”) EGM Event Details Date: Tuesday, 19 May 2015 Time: 10.00 am Venue: STI Auditorium Level 9, 68 Robinson Road Capital Tower Singapore 068912 Other Important Date Deadline for lodgement of Proxy Forms: Sunday, 17 May 2015 at 10.00 am 14
SIAS Invite to Pre-EGM Engagement SIAS has extended a Pre-EGM Unitholders Engagement to all Unitholders. Pre-EGM Event Details Moderator: Mr. David Gerald, President and CEO, SIAS Speakers: Mr. Philip Levinson, CEO and Executive Director Mr. David Mason, COO and CFO Date: Monday, 11 May 2015 7.00 pm – 8.30 pm (Registration at 6.30 pm) Time: Venue: MND Auditorium 9 Maxwell Road, MND Building, Annexe A Singapore 069112 Register your interest with Chander or Phillip Lam at +65 6227 2683 or email admin@sias.org.sg. Please provide your Name, Email Address, NRIC Number and Contact Number. A copy of the SIAS invite will be uploaded on CIT’s website. 15
Outlook for 2015 • Prudent Capital and Asset Management • On-going adherence to key strategies • Well-positioned for the future with strong management team 16
Financial and Capital Management Updates 11 Chang Charn Road
FY2014 Financial Highlights FY2014 FY2013 YoY (%) (S$ million) (S$ million) Gross Revenue 99.3 96.5 3.0 77.8 Net Property Income 80.4 3.2 63.0 Distributable Amount 61.3 2.9 Distribution Per Unit (“DPU”) (cents) 5.004 4.976 0.6 18
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